Inmates and their families pay a lot of hidden costs for basic items and services. The state and private vendors are making a lot of money as they provide these services. One private company collected $21 million last year on prison calls in Ohio.

The old cliche about prison is inmates get “three hots and a cot.” They are stuck there, but everything is taken care of.

It turns out that’s not the case. Inmates and their families pay a lot of hidden costs for basic items and services. The state and private vendors are making a lot of money as they provide these services. One private company collected $21 million last year on prison calls in Ohio.

It feels like you’re incarcerated.

That’s how Betsy Trembly, from Upper Arlington, says she felt even though she wasn’t in prison. But her boyfriend was for about three years for drug possession. He was in a prison two hours away from her and they kept in touch by phone.

A necessary toll

And those calls were expensive. Trembly says she spent thousands of dollars on phone charges.

But it was necessary. She says her boyfriend, who Trembly does not want named because of unresolved legal issues, felt hopeless during his incarceration. The phone calls were a bright spot.

“The depression was almost crippling at times. Sometimes the only thing that kept him going through the day was being able to talk to me or talk to his mother, you know, talk to his family,” Trembly said.

Cost of calls

Inmates can call out but they or their families have to pay by the minute. In-state calls cost up to $0.25 a minute. Out-of-state calls used to cost a $1 a minute until the FCC recently capped them.

All those calls add up for families who accept collect calls or pre-pay for them. And all of those charges add up to big bucks for the state of Ohio and the private company it uses to provide phone services.

Last year, Global Tel Link or GTL made $21 million from inmate phone calls. It pays the state at least $15 million a year for the contract.

State prison officials say they use that money to pay for educational classes, addiction recovery services and inmate payroll.

“Without any additional general revenue dollars we would have to stop doing something else we’re doing. And I have to say, I’ve seen our whole budget, and I don’t think there’s a whole lot we’re doing that’s optional,” Chambers-Smith said.

Other states

Many state prison systems collect hefty commissions from private phone companies which drive up rates.

“This Sister of Mercy was very concerned about the surcharge that was on the phone calls making it really unaffordable for families really struggling to get by to maintain that relationship with their loved one,” Ajello said.

Ajello filed a bill. It became law. Rhode Island prison phone calls went from a $1 a minute to $0.07 a minute. The company that provides Rhode Island’s prison phone service is GTL, the same company Ohio uses. Only Ohio inmates pay 75 percent more than inmates in Rhode Island.

Deputy director Chambers-Smith said Ohio prison officials made an effort to get the best price.

“We competitively solicited this contract, and this is the vendor that had the best value for the DRC and the families and the inmates,” Chambers-Smith said.

Inmate advocates want the state to do better

“Keeping in touch with a loved one who is incarcerated inevitably falls onto the backs of those loved ones who are outside of prison,” said Mike Brickner, director of public policy at the ACLU of Ohio.

Brickner said for low-income families the calls can be unaffordable. He wants Ohio to allow inmates to use cheaper pre-paid phone cards but are not allowed to.

“They’re not able to do that because of monopoly that is placed for these companies that run the phone system,” Brickner said.

Betsy Trembly is not looking for free calls. She gets it – her boyfriend was in prison. But she says the high rates hurt inmates and families who can’t afford to pay them.

“I have no idea how a family could make it,” Trembly said. “They probably would [have] very limited communication. [They] wouldn’t be able to talk to children that often, maybe once a week, maybe once a month.”

]]>http://wosu.org/2012/news/2014/03/17/ohio-prisons-cashing-in-on-inmate-phone-calls/feed/2ACLU of Ohio,Ohio inmate,payphone,phone calls,prison,privatizationInmates and their families pay a lot of hidden costs for basic items and services. The state and private vendors are making a lot of money as they provide these services. One private company collected $21 million last year on prison calls in Ohio.Inmates and their families pay a lot of hidden costs for basic items and services. The state and private vendors are making a lot of money as they provide these services. One private company collected $21 million last year on prison calls in Ohio.WOSU Newsno4:43Audits Show Concerns About New State Prison Vendorhttp://wosu.org/2012/news/2013/07/15/audits-show-concerns-about-new-state-prison-vendor/
http://wosu.org/2012/news/2013/07/15/audits-show-concerns-about-new-state-prison-vendor/#commentsMon, 15 Jul 2013 11:58:43 +0000The Associated Presshttp://wosu.org/2012/news/?p=54257

Audits in Kentucky, Florida and Ohio found Aramark charged states for meals not served, substituted cheaper ingredients into recipes or served inadequate portions.

Several state audits show a private vendor in line to begin feeding nearly 100,000 inmates in Ohio and Michigan has a track record of questionable billing, using substandard ingredients and riling prisoners with meal offerings.

The Ohio prison system has announced the privatization of food service operations in a move to save $14 million annually.

The Department of Rehabilitation and Correction says the contract with Philadelphia-based Aramark will help address a $60 million shortfall the agency is facing because of health insurance costs, medical expenses and other issues.

Prisons spokeswoman JoEllen Smith said Friday that more than 230 of the agency’s 433 food service workers already have moved to other positions within the system, and the system is trying to find places for as many of the remaining workers as possible.

The union representing prison guards criticized the announcement, saying it had offered a competitive proposal to keep the work in-house while saving money.

Up to an additional $1.5 billion could be generated by matching local and federal funds.

Republican John Kasich was announcing his plan Thursday. It caps any toll increases on trucks at inflation, freezing rates for 10 years on local trips paid for with an EZ Pass.

Ninety percent of the proceeds from bond sales, backed by future toll revenues, would go to northern Ohio projects, including the turnpike. Diverting toll revenue off the roadway will require lawmaker approval.

The plan retains the Ohio Turnpike Commission as a public entity and retains jobs.

The governor originally touted benefits of a lease. But counties hosting the 241-mile toll road strenuously objected.

Gov. John Kasich is hinting strongly that a plan to lease the Ohio Turnpike is coming by the end of the week.

Gov. John Kasich has been talking about his turnpike plans for months, but not releasing many hints, other than to say that he considers the toll road an undervalued asset.

On Monday, he gave a group of county commissioners and county engineers advice on how to consider the turnpike.

â€œYou have some very important equipment that you have to service all the time. But itâ€™s sitting in a barn somewhere. And itâ€™s on your books. How many of you would allow that to just sit there? Youâ€™d try to figure out how to use that asset for sure because it means real money, real value for the citizens.â€

Kasich also told the group “the bulk of this money will be spent in the north,” implying that there is a plan for a lease. But Kasich wouldnâ€™t offer reporters much of a preview.

â€œWhat I would say about it is itâ€™s definitely a jobs program and we also are taking into account a lot of the concerns that we heard up north. We think weâ€™ve arrived at the right place and weâ€™ll have a lot more to say about this.â€

Kasich says heâ€™ll roll out the plan on Thursday and talk about it throughout the state.

]]>http://wosu.org/2012/news/2012/12/11/kasich-expect-turnpike-announcement-this-week/feed/0John Kasich,lease,northeast Ohio,northern Ohio,ohio,Ohio Turnpike,privatizationGov. John Kasich has been talking about his turnpike plans for months, but not releasing many hints, other than to say that he considers the toll road an undervalued asset.Gov. John Kasich has been talking about his turnpike plans for months, but not releasing many hints, other than to say that he considers the toll road an undervalued asset.WOSU Newsno1:16OSU Moves Forward With Parking Bidshttp://wosu.org/2012/news/2012/04/24/osu-moves-forward-with-parking-bids/
http://wosu.org/2012/news/2012/04/24/osu-moves-forward-with-parking-bids/#commentsTue, 24 Apr 2012 16:04:10 +0000Steve Brownhttp://wosu.org/2012/news/?p=27147

Ohio State University has started accepting bids as part of a possible lease of its parking operations. The school says it will not accepts bids lower than $375 million for a 50-year lease.

Ohio State University has taken the next step in a controversial plan to possibly privatize its parking operations.

The university is, until the end of May, accepting bids from companies interested in leasing out OSU’s massive parking operations.

Almost immediately after trustees announced last year they were exploring parking privatization, students started voicing concerns about predatory ticket writers and sky-rocketing parking fees.

In a recent faculty survey, 92 percent voted against privatization.

OSU Undergraduate Student Government President Nick Messenger also sits on the committee looking at privatizing parking. He says any lease would have built-in safe guards.

“There are a lot of rules and stipulations that would be put in place legally to prevent a private operator from coming in and just gouging students and faculty with ridiculous rate increases,” Messenger says.

OSU President Gordon Gee says the school would not accept a bid under $375 million, and Messenger thinks it could be in the half billion dollars range.

]]>http://wosu.org/2012/news/2012/04/24/osu-moves-forward-with-parking-bids/feed/0ohio state,parking,privatizationOhio State University has started accepting bids as part of a possible lease of its parking operations. The school says it will not accepts bids lower than $375 million for a 50-year lease.Ohio State University has started accepting bids as part of a possible lease of its parking operations. The school says it will not accepts bids lower than $375 million for a 50-year lease.WOSU Newsno51State Panels OKs Turnpike Studyhttp://wosu.org/2012/news/2012/02/14/state-panels-oks-turnpike-study/
http://wosu.org/2012/news/2012/02/14/state-panels-oks-turnpike-study/#commentsTue, 14 Feb 2012 11:24:02 +0000Bill Cohenhttp://wosu.org/2012/news/?p=23347

A state legislative panel has also approved a study on privatizing Ohio's rest areas.

Ohio officials want to know whether the state’s 101 rest stops could be leased to a private operator and how much a potential deal might be worth.

Click the play button above to hear Bill Cohen’s full report.

The Ohio Department of Transportation wants to use $2.85 million in federal research money the state has to pay a consultant to evaluate options for privatizing the Ohio Turnpike and interstate or non-interstate rest areas.

The department made the request to the state Controlling Board, a legislative panel that approves contracts. The panel is scheduled to consider the contract with Austin, Texas-based KPMG Corporate Finance LLC on Monday.

Gov. John Kasich has said leasing rest areas might be a way to address a gap in the transportation budget.

Ohio pays between $30 million and $50 million annually to maintain the facilities.

Ohioâ€™s transportation experts are saying the news that the Ohio Department of Transportation is broke was no secret, but the decision to delay some projects is a big deal.

Now, the discussion moves to how to fix the problem. More specifically: where to find more money.

“People donâ€™t like orange barrels, but they get mad when they donâ€™t get them,” says ODOT director Jerry Wray about the sense he’s getting in the wake of his announcement that the departmetn is running on empty financially, and will have to delay some major construction projects, including pushing back some of the biggest ones for as long as two decades.

The crisis comes from falling gas tax revenue, rising construction costs, and the numbers of so-called mega projects costing over $100 million. Wray says no current projects have been cancelled, even though the department is overcommitted by billions of dollars to projects already in process.

“That is not a priority list, thatâ€™s not a list where weâ€™re picking one project over another. Itâ€™s a funding list. And by that I mean â€“ we look at the development of the project and the controlling factor is when would we have enough money based on our current revenue to sell it and pay for it.”

This news wasnâ€™t any surprise to a think tank that studies transportation issues in Ohio.

“Weâ€™ve been talking about this since October of 2005,” says Gene Krebs, a former state representative who now heads Greater Ohio. He estimates a nearly $4 billion deficit for ODOT by 2017.

The department is funded by state and federal gas taxes. By his math, factoring in standards for more efficient cars and inflation, ODOT will lose seven percent of its purchasing power every year.

So, Krebs says, ifthe solution were to hike the gas tax, it would have to go up two cents every year.

“By the way thatâ€™s two pennies a year forever. If you want to go ahead and start fixing all of our crumbling bridges and the backlog, thatâ€™s nine pennies a year for the very long foreseeable future. So weâ€™re not going to be able to tax our way out of this.”

Wray admits there isnâ€™t much of an appetite to raise the gas tax — U.S. Senator George Voinovich talked about that his way out of office in 2010, and was criticized for it.

Wray says that means other solutions â€“ including privatization.

“Weâ€™re interested in privatizing some of our rest areas â€“ that way we can turn something that is currently costing us money perhaps into revenue. Obviously weâ€™re considering what we might be able to do to leverage the turnpike.”

And Wray says ODOT will be “aggressive in investigating public-private partnerships.”

Krebs says heâ€™s confident the state wonâ€™t rush into a turnpike deal just to deal with the current financial crisis, but heâ€™s pleased to hear the discussion on what to do start now. Otherwise, he says, the future is bleak.

“Itâ€™s only going to get worse. As bad as you think this is now â€“ and weâ€™ve been saying this also since 2005 â€“ as people trade in Hummers for Hondas, itâ€™s going to simply accelerate.”

And Krebs notes advances touted by the auto industry and embraced by drivers â€“ such as all-electric vehicles and those which run on compressed natural gas â€“ also chip away at the financial solvency of the agency that fixes and builds the roads those cars run on.

]]>http://wosu.org/2012/news/2012/01/20/whats-next-for-odot/feed/0i-70,i-71,jerry wray,odot,ohio department of transportation,Ohio Turnpike,privatizationA funding shortfall is forcing the department to delay several major projects, including an overhaul of the I-70/I-71 interchange.A funding shortfall is forcing the department to delay several major projects, including an overhaul of the I-70/I-71 interchange.WOSU Newsno3:18Marion Prison Officials Readying For Transfer of Powerhttp://wosu.org/2012/news/2011/12/29/marion-prison-officials-readying-for-prison-transfer/
http://wosu.org/2012/news/2011/12/29/marion-prison-officials-readying-for-prison-transfer/#commentsThu, 29 Dec 2011 17:24:42 +0000Steve Brownhttp://wosu.org/2012/news/?p=20851

Privatization of the North Central Correctional Institution is part of a state restructuring that state leaders say will save $13 million a year.

Prison officials in Marion are getting ready to turn the North Central Correctional Institution over to a private contractor.

A statewide prison restructuring calls for the Marion facility to merge with a now-vacant juvenile facility next door and be run by Tennessee-based Corrections Corporation of America.

State prisons spokesman Carlo Loparo insists privatization will not mean a dropoff in security or prisoner care.

“The employees of the private facilities train along side public employees. Their operations and procedures are identical to the state facilities, as well as their programming of inmates,” Loparo says.

]]>http://wosu.org/2012/news/2011/12/29/marion-prison-officials-readying-for-prison-transfer/feed/0marion,prison,privatizationPrivatization of the North Central Correctional Institution is part of a state restructuring that state leaders say will save $13 million a year.Privatization of the North Central Correctional Institution is part of a state restructuring that state leaders say will save $13 million a year.WOSU Newsno44Ohio Selling 1 Prison, Taking 1 Backhttp://wosu.org/2012/news/2011/09/01/ohio-selling-1-prison-taking-1-back/
http://wosu.org/2012/news/2011/09/01/ohio-selling-1-prison-taking-1-back/#commentsThu, 01 Sep 2011 15:09:04 +0000The Associated Presshttp://wosu.org/2012/news/?p=14087

Ohio plans to sell only one of five state prisons it put on the auction block in an unexpected twist on privatization plans being announced Thursday.

Ohio plans to sell only one of five state prisons it put on the auction block in an unexpected twist on privatization plans being announced Thursday.

The Associated Press has learned that the state will sell the Lake Erie Correctional Institution in AshtabulaÂ County to Corrections Corporation of America for $72.7 million,
more than the $50 million required to balance the state prisons budget.

Management Training Corporation, or MTC, of Centerville, Utah, will operate North Central Correctional Institution and the vacant Marion Juvenile Correctional Facility as a single prison camp,
saving 6 percent on state costs, according to information from the Ohio prisons department.

North Coast Correctional Treatment Facility in Lorain County, currently operated by MTC, will be returned to state control and merge with Grafton Correctional Institution.